1. Infinisource HSA Administration
11/20/2019

2. Agenda HSA Overview Cost Savings with HSAs
Why Our HSA Program is Right for Your Business
Why Our HSA Program is Right for Your Employees
Next Steps
Edit as needed.

3. HSA Overview

4. What is an HSA?
An HSA is a tax-advantaged account for the purpose of paying for eligible medical expenses
Not employment based
Allows contributions by the employer and employee
Annual contribution limits
2020: $3,550 individual – $7,100 family
HSAs are available only to individuals with qualifying High Deductible Health Plan (HDHP) coverage
Not available to those receiving benefits under Medicare

5. What is an High Deductible Health Plan (HDHP)?
Minimum annual HDHP deductible
2020: $1,400 individual – $2,800 family
Annual HDHP out-of-pocket maximum
2020: $6,900 individual – $13,800 family
Cannot provide first dollar coverage, with certain exceptions – preventive care, dental, vision, limited-use FSA

6. HSA Trends - Adoption
Nearly 2/3 of employers will offer an HDHP with an HSA in 2013, and an additional 25% are considering such an offering in the next 2-3 years. This means that as many as 9 out of 10 employers may offer this type of plan by 2015
For employers planning to offer a CDHP in 2013, 79% say they will offer a CDHP linked to an HSA in 2013, up from 75% in 2012, while 29% will offer a CDHP linked to an HRA, up from 16% in 2012 Enrollment in high deductible plans with HSAs increased from 20.5% to 29.5% in 2011
60% of employers offering single coverage and 57% offering family coverage through HSA-qualified HDHPs make contributions towards the HSA
In mid-2012, HSA assets totaled $14.1 billion, a year over year increase of nearly 21% since mid-2011
By 2015, HSA assets are projected to grow to $27.6 billion
40% of companies include HSAs in their retiree medical strategy, and another 20% are planning to do so in the next 3 years

7. HSA Trends - Demographics
49% of all individual HSA/HDHP enrollees were age 40 or over; 51% were under age 40
On average, HSA account balances have grown 31% each year
The average yearly administration fee for HSA investment programs is $32
Average employer contributions to HSAs are $886 for single coverage & $1,559 for family coverage
The average HSA accountholder is saving approximately $500 in taxes annually
Nearly 1/4 of continuously contributing HSA account holders save most of their contributions, which will help pay for escalating costs of health care in retirement

8. Maximum Out-of-Pocket
2020 Health Savings Accounts Contribution Limits, Deductibles and Out-of-Pocket Expenses
Minimum
Deductible
Maximum Out-of-Pocket
Contribution
Limit
55+ Contribution
SINGLE
$1,400
$6,900
$3,550
$1,000
FAMILY
$2,800
$13,800
$7,100

9. HSA Product Characteristics
Consumer Owned
Account Balance
Contributions
Distributions
Must be paired with a qualified high deductible health plan (HDHP)
May pair with Limited Purpose FSA and/or HRA
Vision, dental expenses only
Employer and/or consumer may contribute to account
Contributions made by payroll deduction, check, transfer
IRS restrictions on annual contribution amount
No third party substantiation required – consumer responsible
Internal Revenue Code §213(d) expenses may be reimbursed
Funds may be withdrawn for non-qualified expenses with penalty
Funds may carry over year to year
Funds are portable
Funds may be invested and earn interest for greater savings potential
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10. Account Characteristics
CDH Plan Comparisons
Account Characteristics
HSA
HRA
FSA
Who owns the account?
Consumer
Employer
Who contributes to the account?
Consumer and/or employer
What amount can be contributed?
The IRS establishes the annual allowable amount and indexes this amount for inflation.
There are no restrictions.
Currently, no restrictions. Beginning 1/1/13, limited to $2,500 per covered employee.
How are contributions made?
Through payroll deduction, check, or transfer.
Through payroll deduction.
Can funds in the account carry over from year to year?
Yes.
Depends on plan design opted by employer.
No.
Are funds portable in the event of job change or death?
No. Funds are forfeited.
Do funds accrue interest?
Yes, interest can accrue.
No. Interest does not accrue.
Can funds be invested?
Yes. Funds can be invested.
Is third party substantiation of expenses required?
No. Consumer is responsible for substantiating the use of funds.
Yes. Each claim or transaction must be substantiated.
Is the annual amount of the contribution available on the first day of coverage?
No. Funds are available after they are contributed.
Depends on the employer’s choice for funding the plan
What expenses can be reimbursed?
All IRS-defined medical expenses
All or a subset of IRS-defined medical expenses
Can funds be withdrawn for non-medical expenses?
Yes, but these funds are subject to an additional 20% tax penalty, except when an individual is 65 or older, disabled or died during the year.

11. Our HSA Solution
The only true multi-account solution for HSAs – all account types are available on a single platform and service experience, debit card, and mobile apps
Provides a comprehensive, one-stop, compliant HSA administration capability
Includes both cash accounts and investment options
Includes a private labeled custodian option with secure, FDIC- insured deposits at HealthcareBank, a division of Bell State Bank & Trust, a $4B financial institution

12. Why Our HSA Program is Right for Your Business

13. Employer Experience Employee Management Employer Portal
Online lookup helps employers respond to employees’ questions and issues.
Employer Portal
Securely access data and reports, submit changes and files, and proactively schedule contributions
EMPLOYER PORTAL
Automated Reporting
Over 50 standard employer reports and notifications, as well as custom reports, if available, are accessible via and/or secure, self-service Employer Portal
Enrollment and Eligibility Management
Conveniently exchange eligibility files, or enroll employees through the Employer Portal.
Account Funding
Multiple options available for funding accounts, including election-based scheduled contributions, ACH funding, and file-based contribution submission via Consumer Data Exchange. Or use Employer Portal to directly set up recurring contribution schedule, and load payroll deductions and employer contributions.

14. Powerful HSA Reporting for Employers
HSA Account Summary
Employer HSA Summary Report
Employer HSA Account Details Report
Custodial/Admin HSA Management
Custom Reporting Solutions
HSA Account Summary

15. Insulation from Compliance and Regulatory Complexity
Privacy, Security…
Compliance…
HIPAA and privacy compliance of personal, medical, financial data
99.99% online portal uptime
Online access secure, authenticated (two-factor)
HSA investment allocations controlled by consumer
Reconciliation and proactive maintenance of accounts
Paperless legal disclosures
Compliance processing (OFAC/CIP/IDV)
Debit Card real-time integration and compliance
HSA maximum contribution controls
HSA tax reporting

16. HSA’s Empower Employers & Employees
Employer Portal – Empowers Employers
Plan details and documentation
Employee/Plan Participant research and service
Reports – Advanced benefit management tools & analysis available online or via
Paperless banking transactions
Consumer Portal – Empowers Employees
24x7 access to manage their CDH accounts
Secure, encrypted access to accounts
Easy to use interface (saves time)
Access to forms on the system
Online enrollment & claim filing
Ability to track claims
Quick reimbursement with direct deposit
Less help is needed from HR (makes your job easier)

17. Why Our HSA Program is Right for Your Employees
Replace “Employees” with Consumers, Members, Participants as needed.
Why Our HSA Program is Right for Your Employees

18. Employee Benefits We’ve made it simple for Employees!
No minimum balance
FDIC insured cash and interest bearing account
Attractive investments
Industry leading investment options
No fees for trades
Convenient self-service 24x7
Intuitive Consumer Portal
Online enrollment
Single sign-on to investments
Seamless, flexible fund access
Integrated debit card
Online access to accounts
Automatic, intuitive 2-way sweep

19. Employee Experience Automated Communications Mobile Consumer Portal
Mobile app lets tech- savvy consumers manage their CDH accounts right from their phone.
Over 10 statements and notifications – all accessible via , consumer portal, and mail when necessary.
Consumer Portal
Robust, branded portal empowers employees, providing everything they need to know about their account, with an industry- leading design that enables quick and easy navigation of content.
Flexible Payment Options
Employee can choose from:
Debit card, which increases consumer satisfaction by reducing paperwork.
Consumer-Initiated Payment on Consumer Portal

20. HSA Employee Experience
Pay bill with Debit Card
Sara goes to the doctor
Sara receives bill from provider and matching EOB showing amount owed
Sara has options!
Use Online Consumer-Initiated Payment
Provider submits expense to health plan
Pay bill with after-tax dollars and submit for reimbursement
Pay bill with after-tax dollars and leave money in HSA to accrue interest
Health plan processes claim and applies discounts
Pre-set to add to Expense Tracker – then later choose to pay from HSA or pay with after-tax dollars and leave money in HSA to accrue interest
Pre-set to pay provider claims automatically by check or EFT

21. Integrated HSA Investments
Powerful Features
Account Information
Balance by Investment
Personal Rate of Return
Fund Performance
Transaction Detail
Fund Activity Summary
Pending/Activity history
Manage My Account
Investment Elections
Realign Investments
Transfer Investments
Automatic Rebalance
Integrated Resources
Planning & Guidance
Account Projection
Financial Calculators
Reference
FAQ
Personal Performance
Rate of Return
Automatic Sweep
Automatic Portfolio Rebalancing

22. Consumer: Tax Forms Online
Form 8889 – Consumer files with taxes
Form 1099 – Distributions
Distribute by February 1st
Form 5498 – Contributions
Distributed by June 1st
Must include yearly total of contributions and form with tax forms

23. Our Mobile App Apps allow your employees to: Check available balances
View account activity
Drill into claim transactions and contributions
Access convenient customer service contact info
Submit claims
Upload receipts using device’s camera